The German Games Industry Association (Game) has reported a 15.5% increase in the number of game companies in Germany compared to the previous year. As of May 2023, there are now 908 game companies in Germany, representing a 46% increase from 2020. The data was collected by Game from gamesmap.de in collaboration with Goldmedia.
In addition to the growth in the number of companies, Game also reported a 7% increase in employment by developers and publishers compared to 2022. This growth is attributed to the establishment of smaller studios in the industry. Over the past year, the German games industry and extended games labor market have created over 30,000 jobs. The extended market includes employees of service providers, the media, retailers, education, and the public sector.
According to Game’s managing director, Felix Falk, the effectiveness of the German government’s funding program for games is evident in these numbers. The German Games Fund allows companies to claim back up to 50% of their development costs, with the fund amount increasing to €70 million in November 2022. Falk believes that the recent wave of game company start-ups demonstrates the potential of the German games industry and emphasizes the need to increase funding to €125 million to support further positive growth.
Falk also suggests that the German government should consider implementing games funding based on tax incentives, a common practice in other countries such as Canada and France. This would enable Germany to keep up with its international competitors in terms of games and game technologies.
The German games industry has experienced significant growth and job creation in recent years. The government’s funding program has played a crucial role in supporting this growth, but there is a need for further investment to sustain and enhance the industry’s competitiveness.